Billionaire sports executive Mark Walter’s companies received more than $2.3 billion in loans from a financial firm linked to basketball legend Earvin “Magic” Johnson in the months following the launch of a federal criminal investigation into Walter’s insurance businesses, according to business records reviewed by Bloomberg News and a source familiar with the matter.
Between March and June 2024, Amistad Financial Group, a holding company with Johnson as a board member and minority shareholder, lent roughly $1.26 billion directly to Walter’s companies. Another $1.06 billion was extended to intermediaries that regularly facilitate loans to Walter-affiliated entities, bringing the total new lending to approximately $2.31 billion. These transactions have not been previously disclosed.
Amistad, which Johnson is involved with but does not control or manage, owns insurance subsidiaries Equitrust Life Insurance Co. and Heritage Life Insurance Co., which provided the recent credit. Despite Johnson’s board participation, he does not serve on Amistad’s executive committee, and it remains unclear whether he was informed about the specific lending decisions. Some of Amistad’s insurance units are led by Eric Holoman, a former business manager of Johnson.
The influx of loans from Amistad followed subpoenas related to a Justice Department and Securities and Exchange Commission inquiry into Walter’s insurance companies. The regulators are examining undisclosed affiliated lending by insurers owned or controlled by Walter that reportedly totals more than $20 billion. These loans were made to entities connected to Walter’s broader business interests without notifying Delaware’s insurance regulators, a disclosure requirement for such affiliated transactions.
Following the subpoenas in February, Walter’s insurance companies halted direct lending to him, but Amistad’s subsidiaries resumed substantial financing shortly thereafter. This included loans routed through newly established limited liability companies set up by intermediaries with ties to Walter’s network, such as Federico Hermida of ABS Capital Co., and other entities previously involved in managing Walter-related transactions like Bradford Allen and Hudson Trading.
Walter, who retains a minority voting stake in Amistad but does not participate in its management or board decisions, has a longstanding business relationship with Johnson. Their collaborations include investments such as the purchase of the Los Angeles Dodgers baseball team. Amistad’s corporate address shares space with Walter’s family office in Chicago, and Guggenheim Partners—Walter’s financial firm—serves as investment manager for Equitrust and Heritage Life. Walter’s brother-in-law currently presides over Heritage Life.
As regulatory scrutiny intensifies, Walter is attempting to reduce his indebtedness to his own insurance entities, including Delaware Life Insurance Co. and Clear Spring Life and Annuity Co., in response to rating agencies’ concerns. In connection with this, Walter has agreed to sell the Los Angeles Lakers basketball team at a $12.5 billion valuation to generate liquidity, alongside negotiating a $6.5 billion debt swap deal with Delaware Life. Partial regulatory approval has been secured for a portion of this transaction involving $3.8 billion in debt.
Data through June 30 indicates that Walter’s overall affiliated investments held by his insurers remained steady near $24 billion, representing about 45% of the companies’ invested assets. Many of the loans carry interest rates exceeding 8% and are scheduled to mature by September or earlier. Insurers will disclose additional details on loan repayments, extensions, or refinancing in forthcoming quarterly filings.
Representatives for Walter’s TWG Global holding company and for Johnson did not respond to requests for comment. Officials at the implicated intermediaries similarly declined or did not respond to inquiries. The investigation into Walter’s insurance lending practices is ongoing.